The Commissioner of Income Tax-10 Versus M/s Reliance Communication Ltd.

Revision u/s 263 - Held that:- The entire details were filed and the order itself indicates that it can be inferred that the Assessing Officer not only made enquiries, but satisfied himself with the assessee's replies furnished from time to time in support of its stand. When the Tribunal concludes in this manner and finally in paragraph 16 holds that the Assessing Officer took a perfectly correct or a possible view, then, the order passed by him cannot be termed as erroneous insofar as it is pre .....

in the Tribunal's order, they would denote that the Foreign Currency Convertible Bonds (for short "FCCBs") and mark to market losses, the Assessing Officer passed an order which was erroneous and prejudicial to the interest of the Revenue. The Commissioner of Income Tax being accordingly satisfied, revised the order of the Assessing Officer. 5. Mr. Tejveer Singh invites our attention to paragraphs 6.1 and 6.3 of the Commissioner's order and equally the discussion on the subject .....

ideration. No investigation was carried out by the Assessing Officer to establish the name and address, genuineness and creditworthiness of the actual subscribers to such FCCBs in terms of section 68 of the Act. Mr. Tejveer Singh would submit that there is a clear reference made to a Circular and which Circular of the Revenue has been ignored by the Assessing Officer. He would also submit that this is not a case where the ingredients of section 263 are not attracted and in that regard our attent .....

action of the Commissioner must be based are absent. The Assessing Officer did make an enquiry and considered all the materials. Merely because in the submission of Mr. Tejveer Singh the concession that is recorded in the Tribunal's order was lack of discussion / reference to all aspects in the assessment order does not mean that the Commissioner was justified in exercising his jurisdiction or power under section 263 of the Act. Mr. Dastur read out all the details and the discussion in the T .....

nces, Mr. Dastur would support the conclusions of the Tribunal by reading out paragraphs 8.1 and 8.3 of the impugned order. 8. We have considered the rival contentions carefully. There is no reason to multiply this order with some decisions and reference to them in detail. Suffice it to state that Mr. Tejveer Singh relies on the decision of a Division Bench of this Court in Commissioner of Income Tax vs. Hindustan Lever Limited (2012) 343 ITR 161. 9. That decision refers to the assessment year 1 .....

g a bearing on the profits of the units had not been considered for allocation. The Commissioner found that in the exercise carried out by the Assessing Officer there was indeed an error and the order of the Assessing Officer, therefore, is erroneous insofar as it is prejudicial to the interest of the Revenue. The rival contentions have been noted and in dealing with them, the Division Bench found that the Tribunal has interfered with a finding by proceeding on the basis that during the course o .....

nation on why certain expenditure should not be allocated and the reply of the assessee contained virtually no material or details to establish that there was no direct nexus between the expenditure incurred under the heads in question and the business of the undertakings with reference to which the deduction was claimed. If there was a general explanation given that the expenditure, namely, capital on scientific research had not been incurred at the undertakings and is not directly linked to th .....

supplied the relevant details and giving a point to point reply that the observations relied upon by paragraph 17 by Mr. Tejveer Singh have been made. That must be seen in the backdrop of the facts. In such circumstances, when the order in that case was found to be erroneous insofar as it is prejudicial to the interest of the Revenue that the Commissioner rightly stepped in. 10. In the case before us, the concession of the assessee's authorized representative apart, what the Tribunal found a .....